Tax credits are governmental incentives aimed at fostering specific business activities by mitigating tax liabilities for individuals or businesses. Precisely, they are incentives offered by federal and state governments to foster growth in an industry or serve as a stimulus to promote a particular social or environmental purpose.
Tax credits represent a dollar for dollar reduction in the credit owner’s income tax liability. A variety of dollar for dollar tax credit programs exist including low income housing, film/entertainment, renewable energy, research and development, jobs training, historic and federal. Many of these credits can be transferred by the generator of the credit to other taxpayers.
The parameters of each tax credit determine how a taxpayer benefits. As a trusted partner, we work with corporate tax departments, wealth managers, CPAs, tax and estate planning attorneys, and other financial planning advisors to craft a customized tax credit strategy tailored to align with current and future financial objectives.
Any individual or business with tax liabilities is a candidate for tax credits. Corporations, insurance companies or individuals that pay $50,000 or more in state tax are well-positioned to reap the benefits of state tax credits. Primary candidates include companies or individuals with the following characteristics:
Monarch Private Capital facilitates partnerships that invest in projects that generate tax credits. A taxpayer can invest in a partnership in order to receive a tax credit at a discount to offset their tax liability generating cash savings. We will guide the investor through the process.